Successful companies set goals that support the business mission and recognize employees for a job well done.
Even a sole proprietor can benefit from goal setting and celebrating accomplishments. Now is the time to create goals to make those outcomes happen.
A goal is a specific target, an end result or something to be desired.
It is a major step in achieving the vision of the organisation.
Profitability does not happen without making sales, plus correctly managing expenses.
Employees prefer to know what management expects them to accomplish, and goals provide that direction.
Let’s go back to the profitability goal mentioned previously. Jim Collins and Jerry Porras, in their book “Built To Last” talk about “big, hairy, audacious goals (BHAGs).” One of my favorite examples of a BHAG occurred May 25, 1961, when then President John F.
A company goal stating: “XYZ Company will be profitable” is not very specific. Kennedy announced the ambitious goal of sending an American safely to the moon before the end of the decade. In 1961, no one knew exactly how to make that happen, but the goal inspired many to work toward a desirable outcome.
The human brain has amazing problem solving abilities, and goals channel brain power toward finding solutions. A better way to state that goal is: “XYZ Company will attain a 10 percent net profit margin by the end of 2014, based on sales of 100,000 units.” Now it’s possible to plan action steps to reach that goal and adjust the progress toward attaining the goal if necessary.
Whether business goals are to set company direction or provide motivation, they should be specific, measurable, achievable, and timely. Once in a while, management will want to change the course of an organization by motivating employees to reach higher.